COFCO Meat Holdings, the Hong Kong-listed pork processor, has said it expects to report a jump in annual profits in March.
The group, which Chinese state-backed conglomerate COFCO floated in November, is on course to report profit attributable to owners of the company before biological fair value adjustments of “no less than CNY850m (US$123.9m)”, up over 400%, the business announced to the Hong Kong Stock Exchange.
COFCO Meat said it expected the figure after the biological fair value adjustments would be “no less than” the result before the adjustments.
The business, in which Brazil-based meat giant BRF is an investor, said its hog production had benefited from a rise in hog prices amid a fall in the stock of sows in China.
COFCO Meat also said its “major products” – which it says include fresh pork and processed meat products – grew year-on-year.
The company also pointed to moves to make its hog production more efficient and “optimise the sales channels mix” of its fresh pork, processed meat products and international trading businesses.
The business expects to report its annual results in late March.
COFCO Meat saw its shares tumble on their first day of trading on 1 November, closing down at HKD1.66 from its IPO price of HKD2 a share. On the day of its trading update (16 January), COFCO Meat’s shares closed at HKD1.47. The company’s shares closed today at HKD1.54.
